Legal strategies to prevent the financing of terrorism through digital currencies

In recent years, with the rapid growth of global non-cash transactions, digital currencies have been booming and have attracted widespread attention in the industry. The outbreak of Covid-19 in 2020 also had a positive effect on the rapid growth and development of digital currencies, which exacerbates the impact of monetary policies and increases the vulnerability of the financial system, and challenges the regulatory framework and cyber security. This has become more insecure with the use of digital currencies by terrorist groups. Based on this, in this article, we are looking to investigate what role and effect digital currencies have in financing terrorism. And also what preventive strategies are there for this purpose?

This research was carried out in terms of practical purpose and in terms of gathering information by documentary method and through the study of valid laws and sources, and the obtained information was analyzed in a descriptive-analytical manner.

Today, the use of digital currency by terrorist organizations puts more pressure on the international community to fight the financing of terrorism. Terrorist organizations are motivated to use digital currency mainly due to its anonymity and lack of strict financial supervision at the national level. The reasons for the decrease in the use of cryptocurrency by terrorist organizations are the price of digital currency and the state of domestic development, the strengthening of international organizations and national surveillance, and constant attacks.